Canada to require all new cars to be zero-emission vehicles by 2035

The end of the road for gas-powered vehicles in Canada is fast approaching.

What happened: The Canadian government will require that all new cars sold are zero-emission vehicles by 2035, according to a report from the Toronto Star.

• The mandate is expected to come as part of a package of new regulations called the Electric Vehicle Availability Standard that will be announced tomorrow.
• The rules will apply to auto manufacturers, who will have to earn a certain amount of credits by selling zero-emission vehicles and building charging infrastructure to hit the government’s targets.

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Why it matters: The decision will force a dramatic acceleration in the shift to EVs, which today only account for 12% of new vehicles sold in Canada.

• Not only will auto manufacturers need to retool to supply all those shiny new EVs, but a successful transition will depend on scaling a robust EV supply chain capable of delivering everything from batteries to chargers.
• And speaking of chargers, Canada will need around four million more public charging ports to make widespread EV adoption feasible, according to the Canadian Vehicle Manufacturers’ Association.

Zoom out: Canada’s rules are in line with EV sales mandates adopted by a number of other countries. The UK, Netherlands, and a number of large US states, including California and New York, will also require all new vehicles to be zero emission by 2035 or sooner.

• In Norway, the country with the highest adoption rate of EVs, around 80% of new cars are already zero emission, and it plans to require that share to reach 100% by 2025.

Yes, but: Without generous incentives for buyers, the price of EVs — the cheapest options are still around twice as expensive as low-end gas-powered cars — could make them a difficult sell for many Canadians.

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